FAANG stocks have now shed more than $1 trillion in market value since recent highs, whilst Target leads the fall in retail as its shares dropped 10.5% yesterday after posting worse than expected earnings figures.
The Nasdaq ended the day down 1.7%, whilst the S&P was down 1.8%. The Dow Jones dropped 550 points to close on Tuesday, erasing this year’s gains as it moved into negative territory.
Asian stocks slipped on Wednesday as intensifying fears on global economic growth and
Written by Kyle Rodda - IG Australia
I see red: The global equity rout continued last night, and out to the furthest horizons it was a sea of red. There was very little reprieve no matter where one spun the globe. The Asian session saw China's equity bounce faded again, joining the suffering experienced by the Nikkei, Hang Seng and ASX200; European indices continued their orderly decline, underpinned by a 1.6 per cent drop in the DAX and a 0.76 per cent fall in the FTSE 100; and with less t
Nissan shares fell more than 5% following Chairman Carlos Ghosn being placed under arrest for allegedly violating Japanese financial law
Societe Generale SA settles sanctions violation case with US authorities agreeing to pay $1.34 billion
Talk talk hackers who caused massive data breach affecting 1.6 million customer accounts in 2015 have been jailed for cyber crimes
Oil prices ended on a high yesterday, as EU reported to back French sanctions on Iran
Dow Jones tu
Written by Kyle Rodda - IG Australia
Risk? No, thanks: Markets have given a resounding “nope” to all varieties of risk overnight. Equities have been slogged on Wall Street, following to a sluggish day in European markets, that saw the FTSE drop 0.2 per cent and the DAX shed 0.85 per cent. Here it looks like this is the convergence punters have been calling: US shares are playing a rapid catch-up with their global counterparts. The losses are piling up. The NASDAQ has been hit the worst in t
The Asia-Pacific Economic Cooperation (APEC) summit ended on Sunday with leaders failing to agree on a formal joint statement for the first time in its 25-year history, due to disagreements on trade. Chinese President Xi Jinping expected to gain influence in the Pacific as Trump and Putin decided not to attend the summit, however Xi left disappointed as the US and allies made it clear that they are prepared to use economic and military means to counter China's influence.
Asian equities we
Another ‘Brexit Breakthrough’ Falls Apart
Yet another potential breakthrough in the Brexit stalemate seemed to be hashed out at the beginning of this past week following hours of legal negotiation and closed doors discussions. Supposedly, a draft bill was worked out that both the Prime Minister and top European Union negotiators were comfortable moving forward with. If there were only two parties which needed to be satisfied in this divorce, that would be that. However, there are multiple p
Weaker sentiment: Risk aversion continues to plague global markets. Despite some positive developments on Friday regarding the US-China Trade War and US Federal Reserve policy, confidence appears to be lowly, resulting in a general flight to safety. It was telling that the NASDAQ couldn't close higher along with the Dow Jones and S&P500 on Friday: the desire to jump into growth stocks keeps diminishing in this market. It raises the risk that market participants have internalised the idea tha
Expected index adjustments
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 19 Nov 2018. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect your positions, please take a look at the video.
NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a cash neutral ad
Theresa May continues to back her Brexit deal despite deep divisions in her party, 16 members of which have openly called for a vote of no confidence in the Prime Minister
Brexit draft agreement led to several resignations including Brexit Secretary Dominic Raab and cabinet minister Esther McVey
The GBP fell 1.7% against the dollar and 1.9% against the Euro yesterday, the lowest in over two weeks. However, this morning has seen a slight rally
The Trump administration are rep
Written by Kyle Rodda - IG Australia
Brexit break-down: The headlines in financial markets are mostly Brexit related. What was suspected has become so: Prime Minister Theresa May’s deal with the European Union has fallen by the wayside, potentially (if not, likely) rendering it mute. 24 hours is of course a long time in markets, and this time yesterday optimism was blossoming about a potential Brexit deal to end the years of debate and gridlock. The harsh reality has now bitten though, and
Brexit draft has been backed up by the cabinet where Theresa May will announce a speech on Thursday to the Parliament, however, there are assumptions that this could end with a vote of no confidence
China delivering a written response to the US demands for wide-ranging trade reforms, which could potentially end the trade war between the two countries
Bitcoin market capitalisation declines to its lowest level since October 2017, falling to under $100billion. Ethereum and XRP also d
Written by Kyle Rodda - IG Australia
The global market landscape: November’s gains, as modest as they were, have been snatched it would seem, across Wall Street indices and Australia’s ASX200. The bloodletting has been profuse once more this week, and it seems that diminishing number of momentum chasers have had handed to them another dose of market reality. To be fair, this latest round of selling has been precipitated by a new risk: tumbling oil prices. The price of the black stuff bounce
Theresa May faces a crucial cabinet meeting today at 14:00 UK time as she seeks support from senior ministers for her draft Brexit deal between the EU and the UK.
In light of the news of a potential Brexit deal being agreed, the pound rose 0.12% against the dollar on Wednesday morning and 0.16% against the Euro.
The US equity markets generally ended down as Wall Street fails to claw-back earlier losses from the lackluster performance of the energy sector. The S&P slipped 0.2%,
Written by Kyle Rodda - IG Australia
Fleeting relief: The Chinese and Americans are talking again; and the UK and European Union are nearing a deal. Those are the two stories that have turned the dour sentiment that characterized the first trading day of the week into something resembling optimism. Perhaps it’s another relief rally – every time the world doesn’t end we get one of those. Like when US mid-terms passed with few surprises, things going as they ought to engender nice feelings in
Theresa May´s cabinet is set to meet today in order to try and find a solution to the Irish border crisis, the main headache for Brexit talks in the last few months.
As a result of the uncertainty regarding a Brexit deal, the GBP weakened against its major pairs, falling by almost 1% against the US dollar and 0.2%against the Euro.
The Dow Jones lost 2.32% on Monday falling by 602 points to close at 25,387.18, after Apple suffer another hit and worries over global trade continue.
Written by Kyle Rodda - IG Australia
Week starts soft: Global equities are down to start the new week. The stories driving the overnight moves are slightly different, but the themes remain the same: the dual risks of higher global interest rates and the prospect of slower global growth has put the bears (at least momentarily) back in control. It can feel repetitive to keep having to reel-off this story. Slower growth, higher rates, slower growth, higher rates – the message keeps echoing thr
Crude prices gained, as Saudi Arabia leads OPEC and its allies into cutting Oil supply from December. The Saudis mentioned seasonal factors among concerns for weaker demand, as they laid ground for a wider production curb in 2019.
Gold holds steady near a one month low as it keeps losing lustre as a safe haven to the benefit of USD. Spot gold was little changed at $1,209.57 per ounce at 01.21 GMT. Will the commodity benefit from a more divided White House?
Yuan proxies such as AUD
Will Holiday Conditions Save Us from Fundamentals and Speculation?
Normally, there is not a strong appetite for holiday trading conditions because it can materially slow markets – and most traders seek out volatility, even if it is as much a risk as a basis for potential. However, this year, there will be a strong appetite for the typical conditions associated with the time of year. In 2018, we have seen an extraordinary bout of volatility with dramatic bear waves in benchmark risk assets
Written by Kyle Rodda - IG Australia
Volatility lower; risks remain: Financial markets face far fewer risk events this week, but as has been repeatedly observed in recent months, that does not preclude the possibility of ample volatility. If anything, with so much global economic and political uncertainty at present, the absence of news can make already murky circumstances appear murkier. Traders are still jumpy and rather trigger happy, though implied volatility has been downgraded over the
Expected index adjustments
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 12 Nov 2018. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect your positions, please take a look at the video.
NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a cash neu
Theresa May to visit Brussels today to meet with EU leaders. The visit will see May attend ceremonies marking 100 years since the end of the First World War and she will also have a working lunch with French President Emmanuel Macron which is expected to cover the Brexit deal following news of a draft withdrawal agreement this week.
US Fed holds rates as expected with a further hike anticipated in December which saw USD gains and Treasury yields hit highest level since 2008
Chinese
Written by Kyle Rodda - IG Australia
The tone of overnight trade: All eyes back on the fundamentals – that’s the attitude now. The post US mid-term election rally stalled overnight, as investors turn their attention to this morning’s US Federal Reserve meeting. The Fed have kept interest rates on hold – that much was already baked into the price. Market activity to close the week will primarily be dictated now by how market participants interpret the language in the Fed’s accompanying polic
China’s dollar denominated imports and exports rise by 21.4% and 15.6% respectively, in comparison to year ago, however, its overall trade surplus was lower than expected, valued at $34.01billion for October, versus $35billion
US Attorney General Jeff Sessions fired by Trump where Matthew Whitaker, his Chief of Staff to take over temporarily
Theresa May announces that the withdrawal deal is 95% complete, and invites Cabinet Ministers to read the UK’s draft deal with the EU
G
Written by Kyle Rodda - IG Australia
The fallout: The US mid-terms have passed, and while there were signs throughout yesterday's trade that the vote would throw up a few curly situations, the outcome fell broadly in line with market expectations. The VIX has dropped and US equities, paced by the NASDAQ, have subsequently rallied, primarily on the knowledge that everything went according to plan -- proving the notion that the biggest drag in markets all-in-all is uncertainty. There are enum
US mid-term elections have resulted in a gridlock in Washington, Trump's Republican Party hold the senate having had key victories in Texas, Indiana and North Dakota.
The Democrats have gained control of the House of Representatives which has set up a divided Congress until the next presidential election in 2020.
The dollar has dipped as the dust settles on the results of the mid-terms, the Euro and Yen both rose 0.2% against the dollar. The dollar index, which measures the value o
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